Suncor to cut up to 15% of its workforce

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In general, the oil and gas industry has been faced with lower prices and the inability to attract outside capital to the sector, said Jackie Forrest, senior director of the ARC Energy Research Institute.

She noted that Canadian industry cash flow levels are expected to drop to $ 13 billion this year, from $ 53 million in 2019.

“The lack of external capital and prices at this level, I think, will motivate further cost reduction in the industry,” she said. “The pressure at these prices is quite severe.”

Eight Capital analyst Phil Skolnick said he was not surprised by the news of the job cuts at Suncor.

“This continues to continue in the industry. They won’t be the only ones we see doing this. . . as long as oil prices stay where they are and stock prices continue to do what they do, ”said analyst Phil Sklonick at Eight Capital.

Many producers were trying to avoid layoffs in the spring and summer, but now have to consider cost cuts, Skolnick said.

“The headwinds on cash flow generation are always present,” he said. “Companies have yet to understand or think more about a lower oil price scenario for longer.”

More soon.

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